Crypto Liquidations Hit Over $2 Billion Amid Market Volatility
The cryptocurrency market experienced dramatic turbulence as global liquidations surged past $2 billion within a 24-hour period. A steep decline in major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) has left investors reeling, with data pointing to a 220% jump in leveraged positions being forcefully closed.
Bitcoin and Ethereum Lead Liquidation Frenzy
Bitcoin, the market’s flagship digital asset, was the hardest hit, with its price plummeting below $82,000. This led to over $1.02 billion in liquidations on BTC-related long positions. Ethereum followed, with over $425 million in forced closures, alongside Solana ($102 million) and XRP ($32 million).
According to Coinglass, more than 405,310 traders faced liquidations during this period, with the largest single order closure amounting to $36.7 million. The recent collapse highlights the inherent risks of leveraging in the crypto market, especially during high volatility.
Market Sentiment at “Extreme Fear” Levels
Broader economic concerns have further impacted crypto sentiment, dragging the Bitcoin Fear & Greed Index down to an “extreme fear” level of 14. For comparison, such low levels were last seen during the global market crash of late 2022.
Market makers are reportedly struggling with systemic liquidity challenges dating back to record-high liquidations in October 2025. Tom Lee, chairman at BitMine, indicated in a CNBC interview that balance sheets for market makers remain under pressure due to unresolved liquidity issues from prior collapses.
Possible Recovery Toward Year-End?
Despite the current bearish outlook, Lee remains optimistic, hinting at a potential year-end recovery for Bitcoin and Ethereum. Institutional confidence also appears to be holding firm, as evidenced by BitMine’s fresh purchase of ETH amidst the market chaos. The timing could present a strategic opportunity for savvy investors to consider accumulating during the downturn, though caution remains paramount.
Invest Smarter: Tools for Navigating Volatility
As the crypto market regains its footing, investors may benefit from using reliable tools and platforms designed for trading efficiency. One notable option is eToro, a trusted trading platform offering features like copy trading and access to a wide portfolio of cryptocurrencies. This platform can help both novice and experienced investors make informed decisions amid ongoing market flux.
Final Thoughts
The $2 billion liquidation surge underscores the volatility of the cryptocurrency market. While opportunities abound for long-term investors, navigating such choppy waters demands the use of reliable tools, thorough research, and a strong understanding of market trends. As we approach the year-end, the market’s direction could shift rapidly, offering both risks and rewards.
